The Most Powerful Currencies in the World
By Katie Bolin
, last updated January 11, 2012
Even though the euro and the United States dollar are the most traded currencies, there are many other currencies from countries around the world that are more powerful and hold more strength. Here are the most powerful currencies in the world.
The world's most powerful currency is in fact the Kuwaiti dinar. One Kuwaiti dinar is comparable to $3.65 U.S. dollars. Many different Gulf Arab nations had been planning to form one currency with the New Jersey-sized country by 2010, however presently the Kuwaiti Dinar maintains its status as most powerful currency in the world.
Situated centrally in the Persian Gulf, Bahrain's industry thrives on petroleum, refining, financial services and construction. Previously, the Bahraini dinar was the third most powerful currency in the world. After Malta converted to the Euro, Bahrain became second. The Bahraini dinar's stability allowed it to officially become pegged to the dollar in 2001, and currently exchanges at $2.66 U.S.
Oman's prosperity comes from oil resources. Oman plans to diversify their economic sectors by industrialization, increased tourism, privatization and enhancing oil recovery techniques. The Omani rial is pegged to the US dollar at $2.6 U.S.
Latvia holds the fifth most powerful world currency spot. Plans to switch over to the euro have been projected for 2014. However, currently the lats sit at nearly double the amount of the U.S. dollar with an exchange rate of $1.92 U.S.
A notoriously stable currency, the UK pound has always been a strong contender in the money game. The UK has important footing in the realms of banking, insurance and business services. They have stayed away from joining other European countries in the European Economic and Monetary Union (EMU), giving the UK pound an edge over its continental neighbors. The exchange rate compared to the U.S. dollar stands at $1.55 U.S.
The Jordanian dinar earns its strength from economic reforms in the fields of trade, privatization and elimination of fuel subsidies put in place by King Abdallah. The slowing global economy hit Jordan's growth and affected its export sector greatly. However, the isolation from the direct problems fueled by the world economic crisis has saved Jordan from even greater economic hardships. The country is now looking into alternative energy methods as a way to create jobs and avoid an energy crisis. The Jordanian dinar is fixed at an exchange rate of $1.41 U.S.
The euro is used in 17 out of the 27 European Union countries. The eurozone countries that use the euro as their currency are Spain, Slovenia, Slovakia, Portugal, the Netherlands, Malta, Luxembourg, Italy, Ireland, Greece, Germany, France, Finland, Estonia, Cyprus, Belgium and Austria. Although the euro became legal tender almost a decade ago on January 1, 2002, members of the European Union have been trying to gather a unified currency since the 1980s. Due to the economic crisis, the euro has fluctuated against the dollar ranging from $1.21 U.S. to $1.58 U.S. over the past five years.